The price of U.S. soybeans could fall below 300 $/t
Uncertainty in trade relations mIl USA and China, which is the main buyer of U.S. soybeans, and the approach of a record soybean crop in the US could lead to a significant drop in prices.
soybean Market continues to decline gradually under the pressure of the news of increased crop forecasts, but hopes for successful negotiations with China and the abolition of import duties is keeping prices from falling further.
Yesterday, the November soybean futures in Chicago lost 1.7% and has fallen to the level 320,1 $/t
the Cause of the fall was based on data from the crop tour, Pro Farmer, which confirmed the forecast of experts of the USDA relatively high soybean yields in the U.S. 51.6 bushels/acre or 3,46 t/ha and a record gross harvest of 125 million tons of Large carry-over stocks at the level of 21.3 million tons and revenues for a record U.S. harvest, while maintaining 25% duties from China can lead to a drop in soybean prices below 300 $/t in the near future. In July of this year the price of soybeans have already dropped to a level of 306 $/t against the background of worsening trade relations with China.
lower prices for U.S. soy will help US to compete with Brazil, which continues to break records in exports of soybeans. So, over the last week, Brazil exported 2.2 million tons of soybeans, and since the beginning of the month to 4.9 million tonnes, which is 3.5 times more than last year. However, the main volumes were shipped to China.
a Decline in prices for U.S. soy will put pressure on the price of Ukrainian soybeans, for which demand from exporters will be reduced through the action of the new law, and from the processors will be reduced through the download of the processing capacity of large volumes of sunflower, whose production will increase significantly. Processors already offer for soybean new crop 10600-10800 UAH/t with delivery to the plant.